Toledo Chemical Company buys A-123 for $2.40 a gallon. At the end of distilling in Department 1, A-123 splits off into three products: B-1, B-2, and B-3. Toledo sells B-1 at the split-off point, with no further processing; it processes B-2 and B-3 further before they can be sold. B-2 is fused in Department 2, and B-3 is solidified in Department 3. Following is a summary of costs and other related data for the year ended June 30.

On June 30. All gallons on hand on June 30 were complete as to processing. Toledo uses the net realizable value method to allocate joint costs.

Required
Compute the following:
a. The net realizable value of B-1 for the year ended June 30.
b. The joint costs for the year ended June 30 to be allocated.
c. The cost of B-2 sold for the year ended June 30.
d. The value of the ending inventory forB-1.

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(1) Distilling $288,000 60,000 (2) Fusing (3) Solidifying Cost of A-123 . . Direct labor... Manufacturing overhead. 72,000 $135,000 63,000 $195,000 162,000 Products B-1 B-2 B-3 Gallons sold... Gallons on hand at year-end 45.000 30,000 90,000 135,000 45,000 $425,250 $90,000 $288,000